Ludwig v. 25 Plaza Tenants Corp.

Citation584 N.Y.S.2d 907,184 A.D.2d 623
PartiesEleanor LUDWIG, et al., Respondents, v. 25 PLAZA TENANTS CORP., Appellant.
Decision Date15 June 1992
CourtNew York Supreme Court Appellate Division

Finkelstein, Borah, Schwartz, Altschuler & Goldstein, P.C., New York City (Patricia DeCicco Goldstein of counsel), for appellant.

Ross, Suchoff, Taroff, Egert & Hankin, P.C., New York City (Geoffrey R. Mazel, of counsel), for respondents.

Before SULLIVAN, J.P., and HARWOOD, BALLETTA and EIBER, JJ.

MEMORANDUM BY THE COURT.

In an action, inter alia, for a judgment declaring that the Board of Directors of the defendant 25 Plaza Tenants Corp. unreasonably withheld consent to sublet the plaintiff's apartment, and to recover damages, the defendant appeals from so much of an order of the Supreme Court, Kings County (Hurowitz, J.), dated August 1, 1990, as denied in part its motion for summary judgment and granted in part the plaintiffs' cross motion for summary judgment.

ORDERED that the order is affirmed insofar as appealed from, with costs, and the matter is remitted to the Supreme Court, Kings County, for entry of a judgment declaring that the Board of Directors of the defendant has unreasonably withheld its consent to two applications dated March 22, 1988, and May 23, 1988, respectively, to sublet apartment 6D at premises located at 25 Plaza Street, Brooklyn, and for further proceedings with respect to damages.

The plaintiffs, Gerald and Eleanor Ludwig are stockholders in 25 Plaza Tenants Corp., a cooperative corporation and the defendant herein, and the owners of a proprietary lease of apartment 6D, at 25 Plaza Street, in Brooklyn. On or about February 7, 1989, they commenced this action, inter alia, for a judgment declaring that the Board of Directors of the defendant had unreasonably withheld its consent to two applications by the plaintiffs for permission to sublet their apartment. Subsequently, the defendant moved and the plaintiffs cross-moved for summary judgment with respect to the two sublet applications in issue here. The court denied the defendant's motion and granted the plaintiffs' cross motion with respect to the two applications in issue here.

On appeal, the defendant contends that the court erred. We disagree. The proprietary lease, in essence, provided that any subletting of the apartment must be authorized by the Board. It further provided that "[w]ith respect to a subletting * * * for less than 12 months, the Board * * * shall not unreasonably...

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13 cases
  • Orange Orchestra Props. v. Gentry Unlimited, Inc.
    • United States
    • United States State Supreme Court (New York)
    • December 23, 2021
    ...by-laws or the proprietary lease (see Fe Bland v. Two Trees Management Co., 66 N.Y.2d 556, 565 [1985]; Ludwig v. 25 Plaza Tenants Corp., 184 A.D.2d 623, 624-625 [2d Dept 1992]), beyond or outside the scope of the board's authority (see 40 W. 67th St. Corp. v. Pullman, 100 N.Y.2d at 155; Boa......
  • Orange Orchestra Props. v. Gentry Unlimited, Inc.
    • United States
    • United States State Supreme Court (New York)
    • December 23, 2021
    ...by-laws or the proprietary lease (see Fe Bland v. Two Trees Management Co., 66 N.Y.2d 556, 565 [1985]; Ludwig v. 25 Plaza Tenants Corp., 184 A.D.2d 623, 624-625 [2d Dept 1992]), beyond or outside the scope of the board's authority (see 40 W. 67th St. Corp. v. Pullman, 100 N.Y.2d at 155; Boa......
  • In re Croton River Club, Inc.
    • United States
    • United States Bankruptcy Courts. Second Circuit. U.S. Bankruptcy Court — Southern District of New York
    • September 24, 1992
    ...set forth in Levandusky applies, or for another reason, the court must apply the reasonableness test. See, e.g., Ludwig v. 25 Plaza Tenants Corp., 584 N.Y.S.2d 907, 908 (1992) (court applied reasonableness test after determining that business judgment rule was inapplicable because board dec......
  • Goldhirsch v. St. George Tower
    • United States
    • New York Supreme Court Appellate Division
    • September 21, 2016
    ...(Goldstone v. Gracie Terrace Apt. Corp., 110 A.D.3d 101, 105, 970 N.Y.S.2d 783 [citations omitted]; see Ludwig v. 25 Plaza Tenants Corp., 184 A.D.2d 623, 625, 584 N.Y.S.2d 907 ). However, the plaintiff failed to establish his prima facie entitlement to judgment as a matter of law on the iss......
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